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Outsourcing as a Cost-effective Solution

Cost Efficiency from Outsourcing

According to M K Lawyers Senior Associate Noelene Treloar, outsourcing is a great business solution to cut costs, instead of incurring additional costs for training and integration of new technology.

However, there are still challenges that business owners may face should a deal make a wrong turn. Some of the risks that are often associated with outsourcing are: data security, becoming too lax on the service provider’s performance, selecting the wrong service provider, and mismanagement.

To address and avoid these problems, during the first few stages of negotiating, parties should be able to identify their concerns and requirements for the duration of the contract. These can be rate packages, extent of the project, and which parts or processes do each party own.

Meanwhile, High Caliber Line Australia Chief Executive and co-founder David Torelli said he has partnered with a service provider from India for the backend IT processes of his company. One precautionary measure he applies to his company is he minimizes the sensitive data that he shares with the provider.